United States: Interplay Of Marketing & Advertising Law To Activate Brands: What Is Shopper Marketing?

As mentioned, at BAA I gave a presentation on the interplay of
marketing and advertising law to activate brands. Today I will
share with you the final installment of this series...

What is shopper marketing? It's about harnessing
technology and data to reach and influence consumers on their path
to purchase – online to in-store. It's about
creating a brand experience for the consumer – not just a
brand or retail channel transaction. It uses content,
technology, promotion, data, social interaction and insights as
tools for meaningful consumer engagement.

Shopper marketing is dependent on information and data.
But how does a brand or retailer collect and use the data?
When does consumer data collection become invasive, and when do
privacy principles apply to shopper marketing?

Retailers can now track consumers in stores. Brands can
know how long a shopper lingered in an aisle, and which products
she looked at. Real time data is then used to deliver targeted
offers. All of this happens on the path to purchase, the
place and time when consumers should be the most receptive.

Brands can now reach consumers in store aisles. Think
about location tags, beacon technology, retail keywords, RFID
chips, and smartphones all working together to create interactive
shopping experiences where e-commerce is brought into the brick and
mortar context and brands connect with consumers via apps.

Virtual reality has also become part of shopper marketing.
Brands combine consumer and brand data to create an immersive
virtual reality shopping experience. For example, Lowes
launched a VR program that lets consumers remodel their homes with
products available at Lowes. Customers can virtually
stand in their new home and tweak the design – all without
having to knock down an actual wall.

But what are the pitfalls? And how are consumers
reacting? In one recent study, 72% of consumers said they
were disturbed by how much of their information was known by
retailers. Yet, 60% of respondents said that they'd share their
real-time location data in return for something of value –
like discounts, rewards, or even faster checkout. Brands need
to be aware of and respond to this disconnect while maintaining
transparency with their consumers and keeping in mind key privacy
principles that are in line with best practices, such as the Mobile
Location Analytics (MLA) Code of Conduct. A brand or retailer
needs to consider what steps to take to comply with its
obligations. Gathering data and tracking consumers without
appropriate notice, choice and/or consent runs the risk of legal
challenge – not just from the FTC, but in the form of
consumer class actions. The FTC's recent enforcement
actions against Nomi Technologies and Wyndham show us that the FTC
is focused on enforcing consumers' rights to consent to, and
opt out of, the collection of their data, and to have their data
properly secured if it is collected by the brand. Similarly,
the BBB has challenged mobile app developers for failing to secure
consumer consent to collect geo-location data and unique device
identifiers, and the DAA has issued guidance explaining how privacy
principles apply to multi-site and cross-app data used across
devices.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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